The IRS recently announced new withholding guidelines for all employers and payroll companies. Employers are expected to update your paycheck on or before Feb. 15. That means you’ll need to review the amount withheld from your paycheck. Why? Because the Tax Cuts and Jobs Act lowered tax rates, increased standard deductions and eliminated personal exemptions. Many employees should see an increase in their paychecks. This could mean that at the end of 2018 you could be faced with a tax bill when you file your taxes for tax on other items not generally subject to withholding like bonuses, interest, dividends and capital gains.
Feel free to contact our office for assistance in determining if you have enough withholding based on your situation.
Written by: Doug Rodrigues